Sellers in the off market witnessed bigger losses that those who listed their properties in the market.
A report from PropTrack found that off-market sales between July 2021 and March 2022 achieved process that were 3.8% less than those listed, on average.
Taking that rate, the difference is estimated to equate to an average loss of more than $60,000 in Greater Sydney.
For units, the difference was 1.3%. This, however, depends on location — Greater Sydney unit sellers sold their properties for 2.9% less or equivalent to more than $25,000 on average.
During the same period, property price growth slowed rapidly, and that has not yet accounted the impacts of the rate rises that would come in the coming months.
Here are the other findings of the report:
- Off-market sellers in New South Wales and Queensland reported the bigger losses relative to other states.
- In Sydney, houses sold unadvertised sold 4.2% lower than listed ones.
- Off-market sales in the median price range of $500,000 to $750,000 performed the worst nationally. They sold 4.2% lower prices.
PropTrack senior economist Paul Ryan said deciding to sell off-market could come at a significant cost to owners.
“While some sellers might try to save money by not advertising online, this analysis shows the potential earnings lost in the final sale price far outweighs the initial cost of advertising – particularly in a market with prices falling,” he said.
“These reflect the losses for selling off-market in current slowing market conditions, a key consideration for sellers as home prices decline further over the next year.”
Ray White Preston Director Ian Dempsey said choosing to advertise a property for sale online has never been more important than in these current market conditions.
“With home prices falling, a strong marketing campaign can be the difference between securing the best price possible and settling for a price below a vendor’s expectations,” he said.
Mr Dempsey shared that he recently facilitated a sale in Melbourne’s Preston for $1.52m after advertising online. The end price is significantly higher than the $1.2m to $1.3m offers the property had when it was off market.
“Attracting the largest possible pool of potential buyers translates into inspections and inevitably, bidders at auction or offers — the wider a vendor casts a net for buyers the better because you end up with more competition and ultimately a higher price,” he said.
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Photo by geralt from Pixabay.
